West Norriton's budget gap for 2013 reduced to $186,387

WEST NORRITON — Township Manager Jason Bobst told the Board of Commissioners Wednesday night at a work session that the funding gap for the 2013 preliminary budget had increased in the past month with increased medical disability claims for four police officers and then decreased with line item cuts totaling $122,109.

“In the past month the deficit grew to $308,496 because of the costs associated with a medical disability claim for four police officers,” Bobst said. “We have proposed reductions of $122,109 leaving a funding deficit of $186,387. I’m happy to announce we have lessened the deficit.”

Bobst said he hoped to completely eliminate the $186,387 budget deficit during contract negotiations with the West Norriton Police Association (WNPA) before the budget is formally adopted in December. He will meet with members of the WNPA on Thursday.

“We have proposed a police contract that would wipe out the deficit without laying anyone off,” he said. “It would involve modifications to the health care benefits with a wage increase proposal for a three-year contract.”

The current five-year WNPA contract expires Dec. 31, 2012.

Bobst said his aim was to have a 2013 budget that does not include a real estate tax increase.

Bobst thanked the township staff for their work on the budget. “Hopefully we have a game plan for moving forward,” he said.

“It is a new beginning for the township,” said Commissioners’ President George Stojanovich. “We are going onward and upward.”

The preliminary, 2013 $11,610,106 budget presented to the commissioners in early October had a funding gap of $248,462.

According to the preliminary budget, tax assessments have dipped downward in the past two years. In 2012, total tax assessments dipped by $201,680 to $972,291,657. The tax assessments are projected to drop an additional $599,330 in 2013 to $971,692,327. The budget is available at www.westnorritontwp.org.

Local tax collections have dropped to 95 percent while previous budgets were based on 100 percent collection rates.

At the current, 2012 millage rate of 3.487 mills the average home assessment of $119,000 generates a real estate tax of $415.

The preliminary budget in early October had projected revenues of $11,361,644 and expenses of $11,610,106 leaving the budget gap of $248,462.